Norway Has a Gini Index Less Than 30,while South Africa

question 172

Multiple Choice

Norway has a Gini index less than 30,while South Africa has one greater than 60.Both of these countries represent worldwide extremes.What conclusion can be drawn from this information?

• A) Widespread corruption in Norway has produced a high level of income inequality.
• B) The wealthy in South Africa are generally wealthier than in any other country,while the poor are generally poorer than in any other country.
• C) A superior social structure in Norway has produced a more equitable distribution of income than in almost any other nation.
• D) There is a significant gap in South Africa between the wealthiest and the poorest individuals.
• E) There is a significant gap in Norway between the wealthiest and the poorest individuals.

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Definitions:

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and manufacturing overhead.

Equivalent Units

A concept in cost accounting that is used to allocate costs to partially completed goods, measured in the amount of finished goods units.

Conversion Costs

The combined costs of direct labor and overhead expenses incurred to convert raw materials into finished goods.

Materials

The raw substances or components that a company uses in the production of goods or delivery of services.